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Answer

Do I enter my business’s GST payments to government as an item on schedule 125

GST/HST collected from customers and GST/HST payments made to the CRA should be recorded in a GST/HST liability account, which is reported on GIFI Schedule 100, Balance Sheet.

PRE on Rental

Yes, you will pay capital gains tax when you sell your property on 67.6% of the capital gain since 67.6% of the property is used to earn rental income.

Gift Deed Transfer From Parents Account In India To Canada

Her 2 adult children will not pay Canadian income tax on the cash gifts received. If the cash is kept in an Indian account belonging to the adult children and the amount is more than $100,000 per child, then the children must report this amount to the CRA on form T1135, foreign income verification statement. … Continue reading Gift Deed Transfer From Parents Account In India To Canada

retain Earning adjustment

As you know, the prior year’s closing retained earnings should appear on the current year’s balance sheet as opening retained earnings. In your friend’s case, this was not done properly. Therefore, you will likely need to redo the financial statements for the current year.

Returning Canadian and sale of Property after return

Yes, you can sell your Canadian rental property in the current financial year ended on December 31, 2020.

Paying CPP, GST, Income Tax

The answer depends on whether you are being hired as an employee or an independent contractor. If you are an employee, then your employer is responsible for all payroll deductions and remittances, including CPP, EI, and income tax. Your employer will issue a T4 slip to you. On the other hand, if you are an … Continue reading Paying CPP, GST, Income Tax

becoming a non-resident

According to the double taxation agreement/treaty between Canada and Hong Kong, you are a resident of the country where your permanent home is located. A permanent home can either be rented or owned. If you have a permanent residence in both Canada and Hong Kong, you are a resident of the country where your personal … Continue reading becoming a non-resident

How much money can be received from India as inheritance

You do not have to pay Canadian income tax on the value of a foreign inheritance that you receive. You may need to complete Form T1135, foreign income verification statement, to report your foreign inheritance, if the cost amount is more than $100,000 CAD.

Query on residential status in Canada – New immigrant

The tie-breaker rules contained in the tax-treaty in respect of determining where a person is a tax resident (i.e. India or Canada) supersede both Indian and Candian tax legislation. Therefore, after applying the tie-breaker rules, if it is determined that you are a resident of India, then that is what you must follow for both … Continue reading Query on residential status in Canada – New immigrant

Employment income (E.G Salary) when received or when earned? AND employment expense (e.g. salary) when incurred or when paid

Your company must follow the accrual basis of accounting. Therefore, because the salary became payable in December 2019, your company must claim a tax deduction for the 2019 tax year. However, individual taxpayers must follow the cash method when it comes to the taxation of salary. This means that the salary payment you received in … Continue reading Employment income (E.G Salary) when received or when earned? AND employment expense (e.g. salary) when incurred or when paid

Hi Madan, I am canadian and planning to setup an online e-commerce business in USA. is it better to do Business in US with USA entity or with Ontario based corporation? which is more tax efficient?If I go with US C-COrp I Wont have any physical presence in US, so will I pay federal sales tax and Income tax in USA as Canadian?What is your Advice regarding which is most tax Efficient way?

If your business does not have a permanent establishment in the US, then I recommend that you operate your business through a Canadian Corporation (CCPC). In this case, your Canadian corporation can benefit from a low small business tax rate of only 12.5% on the first $500,000 of annual profits, and will not be liable … Continue reading Hi Madan, I am canadian and planning to setup an online e-commerce business in USA. is it better to do Business in US with USA entity or with Ontario based corporation? which is more tax efficient?If I go with US C-COrp I Wont have any physical presence in US, so will I pay federal sales tax and Income tax in USA as Canadian?What is your Advice regarding which is most tax Efficient way?

work in the States | Non Resident of Canada

File a T1 adjustment for 2017 and 2018 to get a tax refund for Canadian income taxes paid on your US income. Do not file a tax return with the CRA to report interest income from Canadian sources. Going forward, let your bank know that you are a NR of Canada and a tax resident … Continue reading work in the States | Non Resident of Canada

Tax for new immigrant

For Canadian tax purposes, the cost basis of your US investments is equal to their fair market value on the date that you permanently move to Canada. Any appreciation in the value of your US investments made prior to moving to Canada is not taxable in Canada.

Do I have to pay taxes in canada?

No, you do not have to pay Canadian income taxes because you are a non-resident of Canada based on your limited ties to Canada. When you permanently move to Canada, you will become a tax resident at that time.

2019 income taxes and HST taxes paid in the year

The HST liability account on the balance sheets is made up of these 3 amounts: 1. HST collected (credit amount) 2. HST paid on business expenditures (debt amount) 3. HST installments paid to the CRA during the year (debit amount) Therefore, the HST liability on the balance sheet should be equal to the HST collected … Continue reading 2019 income taxes and HST taxes paid in the year

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